Bitcoin (BTC) barely recouped its losses on April 9 as new doubts emerged about the continuation of the bull run this month.
$ 56,760 “not a convincing background”
After slipping 5% on Wednesday, BTC / USD saw only a slight rebound to surround $ 57,000 at the time of writing, TBEN Markets Pro and TradingView showed.
Following multiple failed attempts to break resistance near all-time highs, analysts were wary of a further decline and a temporary halt to further price increases.
Filbfilb, co-founder of the Decentrader trading suite, described the current low of $ 56,760 this week as “an unconvincing bottom”.
As reported on Wednesday, funding rates across trading platforms call for a removal of leveraged long positions from overly bullish ones. For Filbfilb, these rates remain “far too high”, he told subscribers of his Telegram trading channel.
Popular Twitter trader Cantering Clark meanwhile sharp Bitcoin’s 20-week moving average (MA) – a classic “line in the sand” for price performance – which still persists at around $ 40,000.
“More fuel as to why I think April-May is putting a lid on $ BTC until later in the year,” he commented on a comparison chart.
“As simple as it sounds, this 20 week MA with a 2 SD band over it. At some point, these meet. Either it’s coming to us or we’re getting there. Hard to imagine that it takes up more space. “
The macro becomes favorable to Bitcoin bulls
Despite continued institutional interest in recent weeks, fueled by further major adoption announcements from banks, signs of a slowdown were also starting to appear that day.
The Purpose Bitcoin ETF saw a slight reduction in its BTC holdings after steady growth, with its assets under management falling in tandem from $ 976 million to $ 944 million.
His colleague at the institutional portal Grayscale’s Bitcoin Trust (GBTC) maintained its negative premium, a phenomenon that has benefited from the continued accumulation of Bitcoin since February.
But not everyone was totally gloomy. For Crypto trader Ed, the ultimate market trajectory was clear.
“In no hurry to get into position,” he Told Twitter followers Thursday.
“54k first or more from here, both mean we’re entering a solid 3rd leg and a lot of benefits ahead of us. BTC will break 60k and eventually go much higher. “
Beyond crypto, a favorable outlook for US stock markets coupled with a weaker dollar could still serve Bitcoin’s near-term goal.
“With surplus savings, new stimulus economies, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic … the US economy is going. likely explode, ”JPMorgan CEO Jamie Dimon said in his annual newsletter to shareholders earlier this week.